The company's revenue rose from £20.7 billion in 2023 to £21 billion in 2024, boosted by broadband price increases and a multi-year cost-cutting plan across the business.
However, the adjusted revenue for its business division declined two per cent from £8.3 billion in 2023 to £8.1 billion in 2024. Its business financial performance continues to be impacted by higher input costs, legacy declines, a one off revenue adjustment and prior year one-offs, partly offset by cost transformation and growth in SMB and security.
BT's profit before tax fell 31 per cent from £1.7 billion to £1.2 billion over the same period. The company's profit after tax was also down 55 per cent from £1.9 billion in 2023 to £855 million in 2024. The profit drop was in part down to a £488 million accounting charge based on falling profits in recent years.
Adjusted EBITDA was up two per cent from £7.9 billion in 2023 to £8.1 billion in 2024. On a quarterly basis, BT's FTTP build rate increased to 1 million premises passed in Q4. Its FTTP footprint is now more than 14 million premises, with initial build underway on a further 6 million. The company is on track to reach its target of 25 million premises by December 2026.
It also reported strong Openreach customer demand for FTTP, with 397,000 net additions in Q4, bringing the total premises connected to more than 4.8 million with an increased take-up rate of 34 per cent.
Allison Kirkby, BT Group chief executive, said, “BT Group built and connected customers to our next generation networks at record speed and efficiency over the past year, while continuing to grow revenue and EBITDA. Having passed peak capex on our full fibre broadband rollout and achieved our £3 billion cost and service transformation programme a year ahead of schedule, we’ve now reached the inflection point on our long-term strategy.
“This delivery and greater capex efficiency gives us the confidence to provide new guidance for significantly increased short term cash flow and sets out a path to more than double our normalised free cash flow over the next five years. This enhanced cash flow allows us to increase our dividend for FY24 by 3.9 per cent to 8.0 pence per share. We’re also setting a further £3bn of gross annualised cost savings to be reached by the end of FY29.
“As we move into the next phase of BT Group's transformation, we are sharpening our focus to be better for our customers and the country, by accelerating the modernisation of our operations, and by exploring options to optimise our global business. This will create a simpler BT Group, fully focused on connecting the UK, and well positioned to generate significant growth for all our stakeholders.”